Matsumoto Inc. (7901) AI Stock Analysis

• Market Cap: ¥891.53M
• Dividend Yield: N/A
• Average Volume (3M): 17.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -2.67%
• EPS Growth: -390.73%
• Country: JP
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -120.31
• Shares Outstanding: 1,143,900
• 10 Day Avg. Volume: 49,710
• 30 Day Avg. Volume: 17,663
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -4.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥901.00 ▲(9.88% Upside)

Matsumoto Inc.'s overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, negative margins, and cash flow issues. Technical analysis provides some support with positive momentum indicators, but valuation remains unattractive due to negative earnings and lack of dividends.

Positive Factors

Diverse Product Portfolio

Matsumoto Inc.'s diverse product portfolio across multiple sectors helps mitigate risks associated with market fluctuations in any single industry, providing a stable revenue base.

Strategic Partnerships

Partnerships with technology firms expand Matsumoto's market reach and product capabilities, fostering innovation and competitive advantage in evolving markets.

Commitment to R&D

Continuous investment in R&D supports Matsumoto's ability to innovate and adapt to market changes, maintaining its competitive edge and driving long-term growth.

Negative Factors

Declining Revenue

Persistent revenue decline indicates challenges in market demand or competitive positioning, potentially impacting long-term financial stability and growth prospects.

Negative Cash Flow

Negative cash flow from operations suggests Matsumoto is struggling to generate cash from its core activities, which may limit its ability to invest in growth opportunities.

Increased Debt Reliance

Growing reliance on debt financing can increase financial risk and reduce flexibility, potentially affecting Matsumoto's ability to navigate economic downturns.

Matsumoto Inc. Business Overview & Revenue Model

Company Description

Matsumoto Inc. (7901) is a prominent Japanese company primarily engaged in the manufacturing and distribution of high-quality consumer electronics and precision equipment. The company operates in several sectors, including imaging, optics, and healthcare technologies, offering a diverse portfolio that includes cameras, optical devices, and medical instruments. With a commitment to innovation and quality, Matsumoto Inc. leverages advanced technology to meet the evolving needs of its global customer base.

How the Company Makes Money

Matsumoto Inc. generates revenue through multiple streams, primarily from the sale of its core products such as cameras, optical devices, and medical equipment. The company adopts a direct sales model, distributing its products through both retail channels and online platforms, which allows it to reach a wider audience. Additionally, Matsumoto Inc. earns income from service agreements and maintenance contracts for its medical technologies, providing ongoing support to healthcare institutions. Strategic partnerships with other technology firms enhance its product offerings and market reach, further contributing to its earnings. The company's focus on research and development ensures that it remains competitive, allowing it to introduce new products that cater to changing market demands.

Matsumoto Inc. Financial Statement Overview

Summary

Matsumoto Inc. is facing significant financial challenges, with declining revenues, negative profit margins, and increasing debt reliance. The negative operating and free cash flows indicate potential liquidity concerns, necessitating urgent operational and cash management improvements.

Income Statement

Matsumoto Inc. has experienced declining revenue over the past few years, with a significant drop in revenue growth rate in the latest period. The company is struggling with negative net profit margins and EBIT margins, indicating operational inefficiencies and challenges in maintaining profitability. The gross profit margin has also decreased, reflecting potential issues in cost management or pricing strategy.

Balance Sheet

The company's debt-to-equity ratio has increased over time, suggesting a growing reliance on debt financing, although it remains moderate. The return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is relatively stable, but the overall financial health is weakened by the negative ROE.

Cash Flow

Matsumoto Inc. has negative operating cash flow, which is concerning as it indicates the company is not generating sufficient cash from its core operations. The free cash flow is also negative, and the free cash flow growth rate is highly volatile, reflecting inconsistent cash generation. The ratios of operating and free cash flow to net income are erratic, highlighting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.19B	2.17B	2.21B	2.24B	2.35B	2.27B
Gross Profit	279.31M	239.12M	327.33M	447.16M	248.72M	111.42M
EBITDA	-144.20M	-520.94M	-28.66M	108.07M	-1.04B	-81.51M
Net Income	-224.23M	-653.36M	-86.61M	74.43M	-1.29B	-389.11M
Balance Sheet
Total Assets	2.85B	2.09B	2.84B	2.83B	2.65B	3.84B
Cash, Cash Equivalents and Short-Term Investments	184.81M	219.84M	557.42M	982.96M	948.10M	758.24M
Total Debt	960.89M	348.32M	487.16M	400.00M	100.00M	0.00
Total Liabilities	1.95B	1.26B	1.38B	1.31B	1.21B	1.08B
Stockholders Equity	901.64M	825.17M	1.46B	1.51B	1.44B	2.77B
Cash Flow
Free Cash Flow	0.00	-190.21M	-203.03M	-298.00M	123.58M	-500.08M
Operating Cash Flow	0.00	-136.42M	-68.85M	-73.98M	136.62M	-74.89M
Investing Cash Flow	0.00	-56.26M	-77.26M	-184.13M	-3.03M	-424.22M
Financing Cash Flow	0.00	-144.91M	-279.43M	292.98M	56.27M	-43.83M

Matsumoto Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 820.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7901, the sentiment is Negative. The current price of 820 is below the 20-day moving average (MA) of 830.75, below the 50-day MA of 837.78, and below the 200-day MA of 891.00, indicating a bearish trend. The MACD of -15.32 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 4.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7901.

Matsumoto Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3955	79 Outperform	¥9.89B	9.02	―	3.02%	6.70%	12.10%
3945	78 Outperform	¥4.11B	4.13	―	3.35%	1.53%	20.73%
3892	70 Outperform	¥7.87B	9.04	―	3.19%	-2.03%	-23.36%
3895	66 Neutral	¥3.11B	4.71	―	4.42%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9929	56 Neutral	¥4.34B	54.21	―	2.65%	-1.03%	-43.05%
7901	47 Neutral	¥891.53M	―	―	―	-2.67%	-390.73%